Asset divestments, economic crisis, and the future performance of companies
This paper investigated the impact of asset divestments made by financially constrained companies on their future performance, as well as their potential for reversing past losses. After applying the pairing of the companies listed, the estimation of the relationships of the variables took place th...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universidade Federal do Ceará
2022-09-01
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| Series: | Contextus |
| Subjects: | |
| Online Access: | http://www.periodicos.ufc.br/contextus/article/view/78644 |
| Summary: | This paper investigated the impact of asset divestments made by financially constrained
companies on their future performance, as well as their potential for reversing past losses.
After applying the pairing of the companies listed, the estimation of the relationships of the
variables took place through GMM and LOGIT. The research findings indicate that there is
evidence that the sale of assets by companies with financial constraints contributes to future
performance. A contribution of this research is for managers who have empirical results that
have not yet been discussed in the Brazilian literature and that can serve as support in
decision-making on the policy of selling or maintaining assets
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| ISSN: | 1678-2089 2178-9258 |